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his Question: 1 pt 9 of 21 (6 complete) Y For each of the following cases, find

ID: 1170150 • Letter: H

Question

his Question: 1 pt 9 of 21 (6 complete) Y For each of the following cases, find the future value at the end of the deposit period at the given nominal interest rate. Number of Compounding Periods in the Year (m) Nominal Interest Rate (%) nitial Deposit ($) 800 100 500 Deposit Future Periods (Yrs) Value ($) 12 5 19 12 Number of Compounding Periods in the Year (m) Nominal Interest Rate (%) Initial Deposit ($) 800 100 500 Deposit Future Periods (Yrs) Value (s) 18 (Round to the nearest cent) (Round to the nearest cent) (Round to the nearest cent.) 12 19 12 Enter your answer in each of the answer boxes.

Explanation / Answer

1) Number of compounding period in a year Intial Deposit Nominal Interest Rate % Deposit period (yrs) Future Value 1 $800.00 18.00% 6 $2,159.64 2 $100.00 12.00% 19 $915.43 12 $500.00 5.00% 4 $610.45 FV = FV(18%,6,0,-800) $2,159.64 FV = FV(12%/2,6*2,0,-100) $915.43 FV = FV(5%/12,4*12,0,-500) $610.45 2) Year Cash Flow FV @ 14% Future value 1 $13,000.00 1.481544 $19,260.07 2 $8,700.00 1.2996 $11,306.52 3 $8,000.00 1.14 $9,120.00 Future Value $39,686.59